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Finance #1
Finance #2
Finance #3
Finance #4
Finance #5
100
This is made up of a group of stocks
What is stock index
100
Performance of a stock index relates to the performance of all the components, not any individual component True or False
What is true
100
Referred to as value of companies stock
What is market capitalization
100
Price of an individual stock can fall while the index as a whole appreciates True or False
What is true
100
Provide an example of a stock index discussed in class
What is Dow Jones, NASDAQ
200
These are the two bond rating agencies
What is S&P and Moody's
200
This market is where investors purchase bonds directly from original issuer for the face value
What is primary market
200
Share of profits distributed by company to their shareholders as cash
What is dividend payments
200
Current price < face value
What is discount
200
This is where investors purchase bonds from other investors
What is secondary market
300
Bonds represent loans to these three places
What are corporations, governments, municipalities
300
Current price = bond value
What is par value
300
Four major parts of a bond
What is face value, coupon payment, maturity, issuer
300
The 3 factors that affect bond prices
What is time until maturity, credit rating, coupon rate
300
Current price > face value
What is premium
400
2 ways ownership builds wealth
What is stock appreciation and dividends
400
Calculated by multiplying the number of outstanding shares of stock by the share price of the stock.
What is market capitalization
400
Current Yield calculation
What is coupon payment / current price
400
This is the calculation of dividend yield
What is Annual Dividend per Share / Price Per Share
400
If a company goes bankrupt and its stock price goes to zero, this happens to its shareholders
What is investors lose all of the money they have invested in the company
500
Bond payments build wealth by this
What is receiving coupon payments
500
The highest rating for Moody's
What is Aaa
500
Bonds can sell at these 3 descriptions
What is par, discount, premium
500
Institution that facilitates the market for stocks (brings together buyers and sellers)
What is stock exchange
500
DJIA stands for
What is Dow Jones Industrial Average